Answer: $1,370
Step-by-step explanation:
Given the survival probability of 0.99863 for the year, the insurance company would need to charge a base premium of $1,370 to break even on a $1 million term life insurance policy for a 30-year-old white male.
(please brainliest if possible, btw, hope this helped you!)
Step-by-step explanation:
probability of 0.99863 that a 30 years old white male while leave another year
1 year equals to Rupees 1 million term life
1 - 0.99863 = 0.00 13
let X to be how much the insurance company will pay
x , 0 , 1000000
p(X=x) , 0.99863 , 0.0013
E (x) =£ni.P(X=xi)
E(x) = 0(0.99863)+(1000000) (0.00139)=1370
1 year Rupees 1 million town life insurance policy charge rupees 1370
